Due to the sharp decline in the production of key sub-sectors, along with the unfavourable impacts from the US-China trade war, 2019 may be the second consecutive year Da Nang’s industry sector will not meet the growth target set for this year. However, in 2020, many large-scale production projects are expected to come into operation, which will enable this sector to thrive.

The city’s garment production is expected to have gone up by 21.3% by late this year. The bustling atmosphere being reported at the city-based Hoa Tho Textiles and Garments Corporation

According to the municipal Department of Industry and Trade, by late this year, the industrial production index (IIP) is estimated to have increased by only 4.83% against 2018, hereby failing to meet this year’s target of 7 - 7.5%.

The reason has mainly been attributed to the sharp decrease compared to the previous year in 3 sub-sectors which account for a large proportion in the added value structure of the city’s current industry, namely the production of iron and steel, electronics and motor vehicles.

In terms of the electronics production, for example, the Foster Electronics Co., Ltd. has cut its production scales due to its difficulties in seeking new orders. Meanwhile, iron and steel production has also gotten into troubles due to the shutdown of the Dana-Italy and Dana-Australia steel plants.

On the positive side of the industry sector, this year is witnessing the good growth momentum for processing and manufacturing, electricity production and distribution, water production and waste treatment.  

Noticeably, in the processing and manufacturing industry, a number of industries have increased sharply since the start of this year, namely seafood processing, shipbuilding and the production of floating components, machinery and equipment, rubber tyres and tubes, cement, construction materials and garments.

Next year, the industry sector is highly expected to go beyond the city’s expectations with an increase of about 7.5% in its IIP compared to this year, whilst its export turnover is estimated to go up 9.4% to reach more than 1.8 billion US$.

It is expected that many large-scale production projects will be officially put into operation next year, which will create a brighter picture for the industry sector. The Da Nang Hi-tech Park-based ICT Vina medical equipment factory is expected to go into operation in the third quarter of next year.

Ms Nguyen Thi Thuy Mai, the Deputy Director of the municipal Department of Industry and Trade, remarked that although next year’s economy is forecasted to face many difficulties and challenges, it is likely to benefit much from the EU-Viet Nam Free Trade Agreement (EVFTA), which is scheduled to come into effect next year.

Another positive sign is the much-awaited debut of many large-scale investment projects which are expected to be put into operation next year. Notably included are the 798 billion VND ATOMA Technology factory, the 8 million US$ ESTEC digital factory and the 170 million US$ Sunshine aerospace components factory, developed by the US-based Universal Alloy Corporation Asia Pte. LTD-UAC- one of the largest FDI projects operating in the city, all of which are highly expected to bring more added values to the local industry.

After nearly 2 years of construction, basis infrastructure development at the Da Nang Hi-tech Park-located ESTEC project has been completed, and it is scheduled to chuck out its first products next year.

It is also worth praising that, business associations and the municipal authorities have made joint great efforts in bettering the business investment environment, actively removing any obstacles, and releasing business support policies and programmes.

The city is accelerating the implementation progress of new IPs and such industrial clusters (ICs) as Hoa Khanh Nam, Hoa Hiep Bac, Cam Le and Hoa Nhon, and hi-tech agricultural production zones in Hoa Vang District.

In particular, the Cam Le IC in the namesake district will come into operation next year, helping to handle the existing shortage of production facing some businesses.

By KHANH HOA - Translated by ANH THU